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Mexican Bonds CD BANK OF JAPAN Bank of Japan sets benchmark borrowing rates below Mexican peso denominated Dec 2023 bonds yield Investor exchanges yen for Mexican pesos or buys Mexican bonds Investor

 Mexican Bonds CD BANK OF JAPAN Bank of Japan sets benchmark borrowing rates below Mexican peso denominated Dec 2023 bonds yield Investor exchanges yen for Mexican pesos or buys Mexican bonds Investor borrows Japanese yen at a low interest rate The investor collects the higher interest rate and benefits as peso rises against yon 0.1% 6.5% Assume that a Japanese citizen decide to borrow 5000 JPY (Japanese Yen) in order to buy Mexican Bonds when the Mexican Pesos equals 5 Japanese Yen (1 MXN = 5 JPY). At the end of the year if the Mexican Pesos (MXN) would be still 5 Japanese Yen (1 MXN = 5 JPY) how many Yen she will get earn?

Apr 08 2021 View more View Less

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